Posted by NationalACH on Sep 10, 2010

What is ACH?

ACH processing electronically transfers money between checking or savings accounts of businesses, individuals, and government agencies through electronic funds transfer (EFT).  

ACH debits deduct funds from bank accounts. ACH credits deposit funds to bank accounts.

ACH eliminates the need for paper check processing and is a more efficient way of transferring funds.  ACH can be used for one time or recurring payments. 

The ACH processing network has been in service for more than 40 years. It is one of the most secure EFT network in the world. 

ACH  is a batch based system.  That is, transactions are cleared through the ACH network in batch mode rather than as a bank-to-bank transfer as is the case in Check 21 processing.

As a result, ACH payments are not immediate.  Consumers should keep this lag time in mind when receiving deposits or paying bills through with ACH.


For businesses, accepting ACH payments stabilizes cash flow, increase revenues, and reduces operating expenses.  For consumers, ACH payments are convenient, simple, and risk-free.

All types of business can establish ACH processing accounts, including those classified as high risk merchant accounts

Are you interested in ACH for your business?

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